Copyright 2002 Star Tribune  
Star Tribune (Minneapolis, MN)
August 1, 2002, Thursday, Metro Edition
SECTION: NEWS; Votes in Congress; Pg. 1A

LENGTH: 1239 words

HEADLINE: Senate drug plan dies;
Stalemate thwarts scaled-back measure

BYLINE: Kevin Diaz; Staff Writer

DATELINE: Washington, D.C.

BODY:
The Senate rejected a last-ditch Medicare prescription drug plan Wednesday that was described by Democrats as a "down payment" on their promise to seniors.

    The scaled-back drug plan was the fourth Medicare drug plan defeated in the Senate in two weeks. It was rejected 50-49, far short of the 60 votes needed.

   The Senate approved two less controversial initiatives, probably the only changes on drug costs this year: one to encourage development of low-cost generic drugs and one sponsored by Sen. Paul Wellstone, D-Minn., to allow re-importation of U.S.-made drugs from Canada.

    The largely party-line vote frustrated Democrats' hopes of making election-year gains on one of their signature issues.

      It could also give Republicans bragging rights. The GOP-led House passed a much less ambitious drug plan in June that would have provided limited drug coverage through private insurers.

     But as both parties look for partisan advantage in the fall, the only thing that seems certain is stalemate.

     Wellstone and Sen. Mark Dayton, D-Minn., were among the vast majority of Democrats who championed the Senate bill, even though it fell far short of the comprehensive coverage they sought.

     Dayton called it "tragic" that the Senate was unable to pass a prescription drug benefit after five years of effort.      "The bill that was rejected today was something, and as Minnesota seniors know, something is better than nothing."

Imports and generics

     Despite their setback, Democrats claimed victory in the passage of the two other measures intended to lower drug costs, which passed on a vote of 78-21.

     The Wellstone-sponsored amendment would allow the re-importation of U.S.-made prescription drugs from Canada, where prices are lower because of government controls.

     The other measure would eliminate "loopholes" that extend drug patents and make it difficult to get generic drugs to market.

     The pharmaceutical industry, among the best-funded lobbies in Washington, opposes both drug re-importation and restrictions on patents designed to speed the introduction of generic drugs. Neither provision was in the House bill.

"These companies have seen Viagra-like profits while American consumers become less and less able to afford prescription drugs at all," Wellstone said.

     A similar drug re-importation plan has been championed in the House by Rep. Gil Gutknecht, R-Minn. House Speaker Dennis Hastert, R-Ill., has promised that the issue will be considered this year.

     The bill passed by the House relied on private insurers, while Senate Democratic leaders sought a prescription drug benefit under the existing Medicare system.

     The other sticking point was money, with the Senate bill's $390 billion cost too high for many Republicans. "This costs more and covers fewer people" than Republican-backed plans, said Sen. Bill Frist, R-Tenn.

    Wellstone said he would "far prefer to have a broader, more inclusive piece of legislation," but added that he would have settled for the latest Senate compromise, which was backed by the AARP and would have provided the most benefit to those with low incomes and high drug costs.

    Minnesota Senior Federation President Barbara Kaufman lamented the failure of the Senate prescription drug plan. But she praised the Senate provisions on generic drugs and drug re-importation as "a positive step."

     "We shouldn't have to go to a foreign country to get reasonably priced prescriptions," said Kaufman, whose organization sponsors bus trips to Canada to buy prescription drugs.

'Last best chance'

     Democratic leaders vowed to press on for a prescription drug benefit under Medicare after the August recess. "Our party has stood for those values of providing relief," said Sen. Ted Kennedy, D-Mass. "I think we're going to win that fight."

     But Senate Democrats were able to pick up only four Republicans Wednesday: Sens. Gordon Smith of Oregon, Tim Hutchinson of Arkansas, Arlen Specter of Pennsylvania and Susan Collins of Maine. And five Democrats voted against their party's plan: Sens. John Breaux of Louisiana, Russell Feingold of Wisconsin, Tom Harkin of Iowa, Ernest Hollings of South Carolina and Ben Nelson of Nebraska.

     Wednesday's vote made it unlikely that the issue will be raised again this year. "This is the last best chance to have a prescription drug bill in the 107th Congress," Smith said.

     The Senate plan, sponsored by Smith and Sen. Bob Graham, D-Fla., would have provided full drug coverage for nominal copayments to people who have incomes less than 200 percent of the federal poverty level, or $17,720 for individuals and $23,880 for couples. It also covered those with annual out-of-pocket drug costs of more than $3,300, with a $10 copayment.     For others the bill offered a federal subsidy of at least 5 percent of each prescription filled.

     About one-third of the nation's 40 million Medicare enrollees have no drug insurance coverage.

     The Bush administration, which has urged Congress to enact drug coverage this year, also criticized the Senate for failing to reach a compromise. "America's seniors, particularly those who are low-income, have waited too long for a modernized Medicare program that provides better benefits, including prescription drug coverage," said White House spokesman Ari Fleischer.

     Democrats said they had sought a middle ground after a more sweeping $594 billion Democratic plan was rejected last week, along with a $370 billion "tripartisan" plan, so named because it was co-sponsored by Sens. Breaux, Charles Grassley, R-Iowa, and James Jeffords, I-Vt.

     The earlier bills also failed to win the 60 votes needed to overcome a procedural challenge because they exceeded a $300 billion budget limit.

     A third $160 billion plan offered last week by Sen. Chuck Hagel, R-Neb., also fell short, with Democrats deeming it insufficient.

     _ Kevin Diaz is at kdiaz@mcclatchydc.com.

2 BILLS APPROVED

       After rejecting a prescription drug plan, the Senate approved:

- A bill intended to get less expensive generic drugs to market more quickly. The Congressional Budget Office estimates that the measure would save consumers, insurers and government agencies $60 billion over 10 years.

- A measure allowing importers to buy U.S.-made drugs in Canada, where they are significantly less expensive, and resell them in the United States at below-market prices.

Votes in Congress

Senate:

- A Medicare prescription drug proposal was defeated, with 49 votes for and 50 against; 60 were needed.



Minn.         Yes No                  Yes No

Dayton, D      X         Wellstone, D   X      

N.D.          Yes No                  Yes No

Conrad, D      X         Dorgan, D      X      

S.D.          Yes No                  Yes No

Daschle, D     X         Johnson, D     X      

Wis.          Yes No                  Yes No

Feingold, D        X    Kohl, D         X      



- A bill that would, among other things, speed generic drugs to the market, was approved 78-21.



Minn.         Yes No                  Yes No

Dayton, D      X         Wellstone, D   X      

N.D.          Yes No                  Yes No

Conrad, D      X         Dorgan, D      X      

S.D.          Yes No                  Yes No

Daschle, D     X         Johnson, D     X      

Wis.          Yes No                  Yes No

Feingold, D    X         Kohl, D        X      





GRAPHIC: CHART

LOAD-DATE: August 1, 2002